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Crime Insurance

 

Crime losses occur in a variety of ways.  From a trusted office manager to a rogue employee to a hacker, crime is an ever-present risk that can cost your organization an enormous amount of money.

Regardless of the size of your technology company, you can be at risk for:

  • First Party Employee Dishonesty - Crimes committed by your employees against you
  • Third Party Employee Dishonesty – Crimes committed by your employees against your clients
  • Computer Fraud – Fraudulent theft or transfers of money resulting from the use of computerized systems
  • Electronic Funds Transfer - Theft when a financial institution transfers money based on fraudulent documentation

The following examples illustrate the wide range of business vulnerabilities associated with crime losses:

A technology company was defrauded by a hacker who gained access to their electronic files and emails. The hacker, using forged documents, initiated an outgoing wire transfer from the company’s account.  The next day when the owner inquired as to why a large sum of money had been wired from the company account, the company realized that the money had been fraudulently transferred.  The insurance company covered the $33,000 loss.

A Zeus configuration targeted a 17 person cloud provider in Arizona.  In this attack, Zeus captured a screenshot of their payroll services web page when a user whose machine was infected with the Trojan visits the website. This allows Zeus to steal the user id, password, company number and the icon selected by the user for the image-based authentication system. The insurance company covered the $28,333 loss.

An employee for a managed service provider in NY was fraudulently withdrawing money from their clients’ accounts.  Over a two year period, the employee changed routing and bank account information on 24 of their customers' accounts to an account in the employee&;rsquos name. A total of 33 unauthorized checks were deposited for $72,211.  The insurance company covered the loss.

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Operated by McCormick & Reinmuth Insurance Agency Inc.